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Green Book Commentaries (Coming Soon)
We are pleased to inform you that a series of […]

Author: International Construction Team
The Engineer under FIDIC forms of contract: Real-life questions
The ‘Engineer’ under the FIDIC forms of contract has long […]

Author: Joanne Clarke
11/28/2024
New Arbitration and Mediation Guidelines for Indian Public Procurement Contracts
The Government of India has recently introduced important guidelines for […]

Author: International Construction Team
CAB to Resolution: Steering Clear of Conflicts
In August 2024 SIMC introduced a new Integrated Appropriate Dispute Resolution Framework (‘INTEGRAF’) to help disputing parties “unbundle disputes and apply the most appropriate dispute resolution mechanism to each aspect of a dispute.” This article considers INTEGRAF’s applicability in construction projects.

Author: Victoria Tyson
No Notice, No Claim? Conditions Precedent in FIDIC Contracts
How do you establish whether a notice provision is really […]

Author: Victoria Tyson
1999 Suite: Commentary on Clause 02 – The Employer
Clause 2 outlines key Employer obligations, including access rights, assistance with permits, and financial arrangements. Additional obligations include payment (Sub-Clause 14.7) and taking over the Works (Sub-Clause 10.1). Employer claims require notice and compliance with Sub-Clause 2.5.

Author: Joanne Clarke
Tags: Employers' obligations
11/27/2024
No Oral Modification Clauses Mean What They Say
Will an oral agreement override a written one that expressly […]

Author: Joanne Clarke
Tags: Court Decision, No Oral Modification Clause, NOM, Oral Agreement, Oral Modification
11/14/2024
The Highest UK Court Reviews the Law on Penalties
A penalty is now to be regarded as: “a secondary […]

Author: Victoria Tyson
Tags: Court Decision, Damages, Law, Law on Penalities, penalties, Penalty, Supreme Court
11/13/2024
The Problem with Enforcing Arbitration Awards that have been Annulled
The purpose of the 1958 New York Convention is to […]

Author: Victoria Tyson
Tags: annulled award, Arbitral Award, award, Court Decision, Enforcement, international arbitration, International Enforcement
The Dangers of Employer Set Off in your FIDIC Contract: Suspension and Termination
If an Employer sets off certified but unpaid sums without following Sub-Clause 2.5, it may breach contract terms under FIDIC 1999. This article explores whether Employers can bypass the Engineer’s role and why the clause’s wording is crucial to both Contractors and Employers.

Author: Victoria Tyson
Tags: contractor, Contractor Suspension, Contractor Termination, Employer, Employer Set-Off, Interim Payment Certificate, IPC, Set-Off, Suspension, termination
FIDIC Sub-Clause 20.5 – A Condition Precedent to Arbitration
The 1999 FIDIC forms of contract contain a number of […]

Author: Victoria Tyson
Tags: Amicable Settlement, Condition Precedent, DAB, Dispute, dispute adjudication board, NOD, Notice of Dissatisfaction, Settlement
FIDIC Silver Book – Payments Due Shall Not Be Withheld… Really?
There is a substantial difference between the payment provisions of […]

Author: Victoria Tyson
Tags: costs, Court Decision, Damages, Delay, Interim Payment Certificate, IPC, payment, Set-Off
2017 Suite: Commentary on Clause 01.15 – Limitation of Liability
Clause 1.15, previously in Sub-Clause 17.6 (1999 Edition), is now separated from Risk and Responsibility. It exempts parties from liability for loss, including loss of use, profit, or contracts, with exceptions for certain sub-clauses, notably Sub-Clauses 8.8 and 13.3.1(c).

Author: Victoria Tyson
Tags: costs, Damages, Delay, Exemption, Exemption from Liability, liability, Limitation, Limitation of Liability
2017 Suite: Commentary on Clause 14 -Contract Price and Payment
Clause 14 outlines payment, certificates, and release from liability. While the methodology remains unchanged, procedural adjustments may delay payments but aim for prompt claim resolution. Some changes benefit contractors: e.g. claims are addressed during or shortly after the contract period.

Author: Victoria Tyson
Tags: contract, Contract Price, costs, Delay, guarantee, interim payment, Interim Payment Certificate, IPC, payment
2017 Suite: Commentary on Clause 13 – Variations and Adjustments
Clause 13 clarifies the Engineer’s power to vary, allowing contractors to object to unforeseeable variations. Significant limitations include objections for health, safety, and environmental impacts. Variations must align with Employer’s Requirements, and supplemental agreements may be needed for significant changes.

Author: Victoria Tyson
Tags: Adjustments, Delay, Time, variation, Variations
2017 Suite: Commentary on Clause 12 – Tests after Completion
Clause 12 covers Tests after Completion, often required for process and power contracts. Tests are conducted by the Employer, with significant changes including competent staff requirement, testing per Employer’s Requirements and O&M Manuals, and new provisions for test timing and notice.

Tags: completion, contractor, Delay, Employer, Test after Completion, Test on Completion
2017 Suite: Commentary on Clause 11 – Defects After Taking Over
Clause 11 has been clarified, with detailed provisions for notices and periods, DNP for Parts, and clearer time limits. Changes include risk allocation, compensation for denied access, and limited liability for Plant damage. Some cross-references may cause confusion.

Author: Victoria Tyson
Tags: Cost, Damage, Defects, Defects after Taking Over, Delay, Taking Over
2017 Suite: Commentary on Clause 07 – Plant, Materials and Workmanship
Clause 7 of FIDIC 2017 mandates specified quality for plant, materials, and workmanship, requiring defect rectification. It covers testing, inspection, and rejection to ensure compliance. All sub-clauses have changed, with several significant modifications.

Author: Victoria Tyson
1999 Suite: Commentary on Clause 16 – Suspension and Termination by Contractor
Clause 16 addresses suspension and termination by the Contractor, including rights to suspend work, grounds for termination, cessation of work, and payment on termination. It specifies notice periods, conditions for immediate termination, and entitlements following termination.

Author: Victoria Tyson
Tags: Cessation of Work, contractor, Contractor Suspension, Contractor Termination, Payment on Termination, Suspension, termination
1999 Suite: Commentary on Clause 12 – Measurement and Evaluation
FIDIC 1999 is a re-measurement contract, with the Employer bearing the risk of quantity variations. Clause 12 covers measurement, evaluation of rates, and valuation of omissions. It lacks a standard measurement method, which has been criticized.

Author: Victoria Tyson
Tags: costs, Measurement, Measurement of Works, Price, Re-Measurement, Works, Works Pricing
1999 Suite: Commentary on Clause 09 – Tests on Completion
Clause 9 covers Tests on Completion, requiring the Contractor to give notice when ready to carry out Tests on Completion, addressing delays by either party, retesting after failure, and handling failures to meet contract requirements after retesting.

Author: Victoria Tyson
Tags: completion, contractor, Delay, Employer, Test on Completion
Cofely v Knowles – From Appointment to Disappointment
There have been two High Court cases within the last […]

Author: Victoria Tyson
Tags: Court Decision, Nominating Tribunal Members, Nomination Process, Tribunal, Tribunal Members
BoQ Rates Neither ‘Immutable nor Sacrosanct’
The Hong Kong Court of Appeal now supports engineers requesting evidence of original tender build-up and disallowing loaded rates if substantial quantity differences justify it. This article explores that new guidance, which finds contract rates to be neither immutable nor sacrosanct.

Author: Victoria Tyson
Tags: Book of Quantities, BoQ, BoQ Rates, Contract Rates, Court Decision, Price-Loading
1999 Suite: Commentary on Clause 04 – The Contractor
Clause 4 of the FIDIC Red Book 1999 consolidates various Contractor obligations, covering 24 topics. It includes general duties and references other significant obligations scattered throughout the Contract, such as communications, assignment, document care, compliance with laws, and time for completion.

Author: Joanne Clarke
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The content of the Knowledge Hub is not legal advice. You should always consult a suitably qualified lawyer regarding a particular legal issue or problem that you have. Please contact us if you require legal assistance.

